When it comes to credit, Darst noted that the spreads are widening in junk bond yields, which he is usually a precursor of slowdown in the economy.

However, there has been some good news out of China, he said, despite the hit the country's stock market and economy have taken this year.

"We get too hung up on China's stock market. Their real estate market is to them what our stock market is to us, and their real estate market they've managed to stabilize," said Darst. "So that's a good thing for the Chinese consumer as they attempt to bring stability to the economy."

He expects China's economy to grow by 5 or 6 percent and not by the country's target of 7 percent. However, he pointed out that 5 percent growth for China is better than the country's 14 percent growth seven years ago since the economy is much bigger now and therefore has more of a contribution to the world economy.